Proof of Stake, Ethereum's Secret Weapon
Since 2011 developers that observed Bitcoin were thinking a lot about their process Proof of Work (PoW). This process wastes a lot of energy and may cause problems to future events. This is why Ethereum has already for a while now something on their roadmap called Casper. If this protocol is successfully implemented, the Ether price might see a rally up to $3k.
What is Casper?
- Casper is an update that will be integrated soon into Ethereum. This improvement will partially change the way that the confirmation of the transactions works. As you know, nowadays blocks have to be mined by miners, this process where an actual person has to confirm the block is called Proof of Work. Casper is introducing a more efficient way to mine, this is called Proof of Stake (PoS). Proof of Stake works through an improvement of your own token. Yes, your Ether mines transactions.
How does this work?
- You introduce your Ether into a mining pool. In this pool, transactions will come and they will wait to be approved by the Ether. Your own Ether transforms into an intelligent database that confirms transactions. The more Ether you have the more transactions you can mine. This due it is actual mining you also receive Ether for doing this. Instead of forgetting your Ether in your wallet you activate them to Proof of Stake and you get money for it!
Conclusion
The Casper update will be a great improvement into the Ethereum network, blocks will be confirmed quicker and easier. But remember the Proof of Work mining will still be active for the classic ones. This update will come soon, in late 2017. Thanks for reading guys, follow to stay informed!
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It could always go down too lol. Great post, upvoted, followed, please do the same!
Boris
And it could also have "the few" own a majority of the coin and use it to take over all decisions... I'm not sure I like the idea but we will see.
Boris
Yes. Whatever happens, let's wait and hope for the best!
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